Compare USAA vs. State Farm: Quotes, Discounts (2023)

USAA vs. State Farm: A Summary

USAA and State Farm are two top ten companies in the car insurance industry in the U.S. in terms of market share. While USAA serves military members and their close family members, State Farm caters to anybody looking to save money on auto insurance. Both insurers have pros and cons, so this article puts them to the test to help you decide.

ICS Score Explanation:

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

USAA

USAA tailors its insurance products to military personnel. Active duty, retired, and separated veterans and their wives and children are eligible for membership. USAA promises that its customer care is “legendary,” and many families agree, opting with USAA for auto and home insurance, banking, investing, and even retirement.

State Farm

State Farm is the top auto insurance company by market share in the country because it’s “like a good neighbor” to many of its customers. They enjoy add-ons, such as a mobile app, roadside assistance, local insurance agents, and a Drive Safe and Save telematics program. Also, State Farm offers bundling with other types of insurance, allowing you to save even more money.

The Best Car Insurance Companies in 2022

Despite neither insurer landing on the list, both offer exceptional benefits in a few areas. For starters, USAA has one of the industry’s best claims and customer service satisfaction ratings. Likewise, State Farm has top ranks for customer service. In addition, it delivers low rates and perks like rideshare coverage for Uber and Lyft drivers.

Compare USAA vs. State Farm: Which Is Cheaper?

USAA offers somewhat lower insurance prices than State Farm in almost every area examined. On the other hand, State Farm caters to all customers, not only military personnel, veterans, and their families. As you read on, you’ll discover that the average cost of insurance coverage from both providers is relatively close, making service and add-ons even more crucial.

The Cheapest Car Insurance Companies in 2022

USAA and State Farm contend with the most affordable auto insurance providers. USAA’s average monthly premium is $43, and State Farm’s is $52, much lower than the $69 national average. In addition, they offer inexpensive insurance costs when you solely need property damage and bodily injury liability coverage (also called liability only).

Compare USAA vs. State Farm Car Insurance by Age

Your age is an essential factor in calculating your auto insurance cost. Data from insurance companies has shown that experience correlates to safer driving. As a result, young drivers under the age of 25 pay the most for car insurance, while experienced drivers spend significantly less.

Examining the rates for both insurers reveals that expenses typically reduce until you reach your 60s. After that, both insurers provide the most affordable prices to drivers in their 50s. Then, as drivers near retirement, costs begin to rise somewhat. However, even the oldest drivers should see auto insurance quotes priced at about what the teens fork over.

Compare USAA vs. State Farm Car Insurance by Gender

Gender influences how much you pay for car insurance. In most circumstances, the difference in rates between genders is tiny, but it may be considerable for certain insurers. Furthermore, until their mid-thirties, males are statistically riskier drivers than women. As a result, insurance providers charge young men a little extra because of the greater risk.

At USAA, men pay $1 more than women, representing a two percent price difference. At State Farm, the difference is more pronounced, with men paying eight percent more than the women. Both companies end up significantly below the national average for both genders. Men and women may want to get quotes from both companies and then decide.

Which is cheapest for men?

At $43 per month, USAA is $11 less expensive than State Farm, and both insurers outdo the national average by significant amounts. In detail, those at USAA pay $43 per month, while State Farm policyholders pay $54 monthly.

Which is cheapest for women?

Women who are just concerned with cost might prefer USAA since it is $42 less expensive, saving you $8 each month. Furthermore, both companies are drastically undercutting the national average.

Compare USAA vs. State Farm Car Insurance by Mileage

Drivers who log more annual miles should expect to pay more for auto insurance. It’s because insurers believe they are more likely to be involved in or cause an accident. However, the price differences may be minimal for some companies, while they can be significant for others. As a result, it’s always a good idea to approximate what you could spend.

Regardless of how often you drive, your rates with USAA and State Farm will be around the same. Perhaps, the insurers use a standard mileage for all premiums, irrespective of customer estimates. USAA trails State Farm at all levels, and both businesses are much cheaper than the national average.

Which is cheapest for drivers with high mileage?

Drive a lot of miles each year? You can make a reasonably safe pick with either insurer, although USAA is somewhat less costly. You’ll save $8 per month with State Farm’s $42 price tag, but even with State Farm’s $50, you’ll save $28 monthly versus the national average. Drivers who live on the road should get auto insurance rates from both companies.

Which is cheapest for drivers with low mileage?

USAA is again the most cost-effective option for low-mileage drivers since the premiums stay pretty close regardless of the number of miles driven. State Farm is close behind USAA at $51 and $50 per month, and both insurers beat the national average.

Compare USAA vs. State Farm Car Insurance by Credit Score

Insurers look at credit ratings because various studies have shown that better creditworthiness is associated with safe driving habits. Nonetheless, even if your credit is mediocre, you can discover reasonable prices. Whether your credit is outstanding or less-than-perfect, Insurify can help you find low-cost car insurance rates from top providers.

A glance at the figures for USAA and State Farm reveals that both insurers follow the general pattern of delivering the lowest rates to those with the best credit. Furthermore, the national average performs similarly at all credit levels. So, paying less for your auto insurance coverage is just one more incentive to pay off debt and earn excellent credit.

Which is cheapest for good credit?

State Farm beats USAA by $2 for those with excellent credit. Still, USAA is the better choice for those with good credit once again. Versus the national average, USAA and State Farm are both great options.

Which is cheapest for bad credit?

Once again, USAA finds a way to keep the people happy. Surprisingly, those with poor credit get the best deal, saving $52 per month or $624 annually when choosing USAA over State Farm. Both companies are safe choices if you have average credit. Still, State Farm exceeds the national average for those with poor credit.

Compare USAA vs. State Farm Car Insurance by Driving Record

Your driving record is the best predictor of future driving behavior for insurance providers. Therefore, being a careful driver and avoiding infractions and at-fault accidents increases your chances of receiving a low-cost premium. However, the contrary is true, and drivers with a history of violations should expect to pay more.

With today’s technology at their fingertips, drivers are more distracted than ever. Accidents, speeding citations, and texting while driving raise the cost of car insurance policies. DUIs continue to be the most severe offense, with a $113 national average monthly cost. The price is 69 percent more than what clean-record drivers pay.

Which is cheapest for good drivers?

Good drivers could choose either insurance provider, but USAA has the better rate. The insurers vary by $9 each month. Still, more crucially, both companies outpace the national average by more than $15 per month or $180 per year. So safe drivers can afford the added security of uninsured motorist coverage with the money they save.

Which is cheapest after a speeding ticket?

For any car insurance provider, a speeding ticket will raise your monthly car insurance rate. However, even if you have one, USAA will save you $8 per month versus State Farm. Additionally, both companies are cheaper than the national average, so it may be prudent to get quotes from each.

Which is cheapest after an accident?

After an accident, you pay your deductible, fix your car, get a rental, and pray your rate doesn’t go up at renewal. USAA offers accident forgiveness, and its $60 per month price tag saves you $12 each month compared to State Farm. And both providers are much less expensive than the $113 per month national average.

Which is cheapest after a DUI?

With a DUI in your driving history, you’ll face some of the most expensive insurance rates. Nonetheless, USAA and State Farm are competitive compared to the national average. Remarkably, State Farm would be your first pick. Still, USAA Insurance is just $9 extra each month, so it deserves a spot on your shopping list.

USAA vs. State Farm Car Insurance: What discounts does each offer?

Our Methodology and How We Compared USAA and State Farm

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.

Frequently Asked Questions